Stock Market

What is the effect of a stock dividend on a corporation's stockholders'equity accounts?


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2012-02-27 06:49:43
2012-02-27 06:49:43

The stock Dividend is more or less profit sharing. When a dividend paying company is profitable they pass along those profits to the shareholders in the form of a dividend check.

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Cash dividend affects the cash and remaining items does not have any effect on cash like depreciation or accounts payable.

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I just looked it up and yeah there is no cash and your stock is decreasing. (OOPS THAT WAS MEANT TO BE A COMMENT.)

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